Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks rise further on advance in U.S. and China markets

JIJI

Stocks rose further on the Tokyo Stock Exchange on Thursday, buoyed by an extended Wall Street rally and a surge in Shanghai stocks.

The 225-issue Nikkei average went up 128.99 points, or 0.60 percent, to end at 21,462.86, after advancing 361.16 points Wednesday.

The Topix index of all first section issues finished up 4.63 points, or 0.30 percent, at 1,559.90. It gained 26.60 points the previous day.

The Tokyo market opened higher, supported by the New York market’s continued advance Wednesday on buying induced by the U.S. Federal Reserve suggesting an interest rate cut possibility in a statement released after its two-day Federal Open Market Committee meeting, brokers said.

In the statement, the Fed said it “will act as appropriate to sustain the expansion.”

The market lost steam after the vigorous start. But buying sentiment grew again toward noon on the back of a sharp rise in Shanghai shares, brokers said.

In the afternoon, both the Nikkei and Topix indexes moved narrowly amid a lack of fresh trading incentives.

“A risk-on mood spread thanks to the rise in U.S. equities,” said Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc.

But Tokyo stocks failed to rise further after the late morning rebound as they were weighed on by the yen’s appreciation against the dollar, market sources said.

An asset management company official said active trading was put on hold ahead of Bank of Japan Gov. Haruhiko Kuroda’s news conference later in the day after the end of the BOJ’s two-day policy-setting meeting.

The news conference was drawing investor attention because Kuroda was expected to suggest the possibility of the central bank taking a fresh easing step in line with the Fed and the European Central Bank, the official said.

Rising issues outnumbered falling ones 1,259 to 767 in the TSE’s first section, while 118 issues were unchanged.

Volume shrank to 1.017 billion shares from Wednesday’s 1.167 billion shares.

Messaging app provider Line Corp. jumped 1.52 percent on a news report that the company will start cryptocurrency trading soon.

Heiwa Real Estate Co. and other realtors attracted buying and so did semiconductor-linked issues such as precision equipment manufacturer Disco Corp.

Other major winners included clothing store chain Fast Retailing Co.

On the other hand, mega-banks Sumitomo Mitsui Financial Group Inc. and Mitsubishi UFJ Financial Group Inc. eased on expectations for lower interest rates ahead.

Among other noticeable losers were automaker Honda Motor Co. and frozen food producer Nichirei Corp.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average rose 130 points to end at 21,400.